Key takeaways:
- SBF’s attorney, Mark Cohen, sent a letter to Judge Lewis Kaplan outlining the details of the former CEO of FTX’s planned appearance.
- The defense contends that SBF’s mental condition and good faith are pertinent to his comprehension of the role played by legal advice.
Sam Bankman-Fried’s attorney, Mark Cohen, sent a letter to Judge Lewis Kaplan outlining the details of the former CEO of FTX’s planned appearance.
In accordance with the court’s ruling of October 1, 2023, the defense asked for permission to get testimony regarding SBF’s knowledge of counsel’s involvement in particular things in the letter Cohen presented to the court to notify it of the testimony that would be given during SBF’s direct examination.
On November 11, 2022, FTX, FTX US, and Alameda Research filed for bankruptcy, and SBF stepped down as CEO. On December 12, he was taken into custody in the Bahamas following the US government’s formal notification of the allegations against him.
In the meantime, Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, the co-founder of FTX, have agreed to plead guilty to the allegations brought against them and are assisting the authorities.
In particular, SBF’s testimony would refute claims made by the government about the involvement of counsel in matters including the auto-deletion policy, the creation of North Dimension businesses, the payment agent agreement, Alameda loans, and the development of FTX terms of service.
The defense contends that SBF’s mental condition and good faith are pertinent to his comprehension of the role played by legal advice. They also claim that to show that he believes in acting in accordance with accepted norms, he must be knowledgeable about industry practices.
According to the letter, Ellison’s admission that he provided manipulated data, Gary Wang, the former chief technology officer of FTX, alleged that SBF helped Alameda “withdraw unlimited funds,” and Nishad Singh, the former engineering director of FTX, testifying about Alameda’s “excessive” celebrity endorsement purchases, highlighted the importance of SBF’s testimony on November 12, 2022, to refute conclusions made from earlier witness statements.
The letter further states that SBF’s earnest intentions to comply with Bahamian authorities’ directions will be the subject of a planned testimony by the defense.
His evidence would center on his views that Bahamian authorities prioritized FTX’s clients’ welfare and that there might have been conflicts of interest between FTX’s in-house lawyers and US bankruptcy counsel.
On October 26, the US government is anticipated to conclude its case against SBF in the morning, and defense lawyers will probably conclude the next day. Prosecutors stated that, based on SBF’s testimony, they were unsure if they would need rebuttal witnesses. Arguments for closure may take place before October 31.
